Tewksbury, Mass., Outlook Revised to Positive by S&P

Standard & Poor's Ratings Services said it revised its outlook on Tewksbury, Mass., to positive from stable.

At the same time, it assigned its AA long-term rating to the town's series 2014 general obligation (GO) bonds and affirmed the AA ratings on the district's existing GO debt. The outlook on all the ratings is positive.

"The outlook revision reflects Tewksbury's continued improved budgetary practices, stable financial performance, and formal adoption of key financial management policies," explained Standard & Poor's credit analyst Timothy Little.

A pledge of the town's full faith and credit secures the bonds. The town will use $9 million for various capital improvements, including permanent financing of outstanding bond anticipation notes (BANs). It will also be refunding its outstanding series 2004 and 2005 GO bonds. On the refunded bonds, there is no extension of maturity and the town expects a net present value savings of about 8%.

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